The G7 members of seven wealthiest countries decided to keep their differences away and strike out China for its illegal trade practices such as export subsidies, over manufacturing, and currency policies … Dr Sakariya Kareem
G7 has made a big decision on global trade. G7 Finance ministers and central bank governors from the US, Canada, UK, Japan, France and Germany, along with heads of the International Monetary Fund (IMF), World Bank Group (WBG), Organisation for Economic Cooperation and Development (OECD), and Financial Stability Board (FSB), met at Banff, Canada to discuss top pressing global issues. The members discussed plethora of issues causing imbalances in the global economy. Amid list of topics ranging from conflict in Ukraine to unsettling tariff tussle between the US and China, it was the “unmarket” trade practices, by China, that was unanimously chosen as the biggest threat to global economy today.
The high profile gathering of intellectual class stretched for over 3 days where the G7 member signed lengthy documents and discussed pressing issues. This meeting was more fruitful that the G7 meeting that was earlier held in March 2025, also in Canada. It was the time when Donald Trump was back in power and imposing hefty sanctions on China to restrain its illegal practices. The G7 members of seven wealthiest countries decided to keep their differences away and strike out China for its illegal trade practices such as export subsidies, over manufacturing, and currency policies.
G7 finance ministers have their opinion voiced out during the meeting. Canadian Finance Minister Francois-Philippe Champagne said, “We found common ground on most pressing global issues that we face. I think it sends a very clear signal to the world … that the G7 is united in purpose and in action.” US Treasury Secretary Scott Bessent told AFP: “I don’t think there were any major disagreements; I thought the meeting went great.” German Finance Minister Lars Klingbeil told reporters it was crucial to “resolve the current trade disputes as quickly as possible,” as tariffs had placed “a heavy burden on the global economy”. “Our hand is extended,” Klingbeil added. French Finance Minister Eric Lombard said: “The atmosphere was warm … We don’t agree on everything, but we talked about everything. Canadian Finance Minister Francois-Philippe Champagne further added to his statement, “This isn’t just about tariffs, but also about values and systems, and future rules of the global economy.
G7 member nations represent 40% of the global GDP and have a big say on world’s economic stability. This latest gathering of G7 members led to a joint pledge to tackle global economic imbalances. While there was no direct reference to China but it was evident that it was only China that resort to malpractices while trading. G7 members together highlighted that China’s flawed state-driven business model gives its companies an edge against local players in other countries, while putting pressure on global supply chains. G7 members agreed that it is the time to have a level playing field to initiate a healthy competition and to defend local workers and businesses from unfair practices. China rejected the criticism and labeled the comments from G7 members a politically motivated. A statement from Chinese embassy in Ottawa declined to immediately comment on the G7 statement. Beijing played dumb by saying it is simply pursuing growth and development, just like the western nation did in the past.
G7 members further underscored the need to address excessive imbalances and strengthen macro fundamentals, given potential global spillovers. G7 called for the IMF to continue to enhance its analysis of imbalances in both its bilateral and multilateral surveillance. G7 will continue to engage with each other and with international partners to advance international cooperation and deliver prosperity.
As G7 has shifted its focus from dialogue to a more hand-holding and action-oriented approach, this could ring warning bell for China as the world watches. This new approach of economy diplomacy by G7 can get rid of global economic imbalances with much more precision. China on the other hand must cut short on its improper ways of doing business with other countries. The G7 members have given clear indication that nobody is staying silent when it comes to stakes on global trade.
The G7 finance members’ meeting is precursor to the G7 leaders summit that is schedule to happen at June 15-17 at the mountain resort area of Kananaskis in Canada. US president Donald J Trump will attend the summit and possibly address the world against global trade and security. The other leaders too will bring their thoughts on table and China this time would surely be the center of discussion.
